HQFO 08/13
00 D O I
GRS 365
CONFIDENTIAL
FM BTC HONG KONG 130600Z NOV 78
TO IMMEDIATE DO I
NO DISTRIBUTION
K129
297
нкав
TRED. CANK Kelim
RECEIVED DEKY 40. 51
PUSD 273 NOU WOR
TELEGRAM NUMBER INDUS 192 OF 13 NOVEMBER
INDIA
N
AK OFFICE!
REGIS
-
Tamen
FOR CLARK EPT FROM HAVELOCK.
YOU WILL HAVE BEEN ADVISED BY KESTEN AND BY COPY OF LIPPITT'S TELEX TO BULLOCK OF THE POSITION RE SF6 SWITCHGEAR. THIS IS AN UNDOUBTED SET BACK FOR BOTH MANUFACTURERS AND WILL NECESSITATE A
RETHINK OF POLICY ON THEIR PART. FACT OF MATTER IS THAT THEIR DESIGN PHILOSOPHY, MAINLY BASED ON CEGB REQUIREMENTS, LACK OF EXPERIENCE AND MANUFACTURING INEFFICIENCY HAVE ALL CONTRIBUTED TO
OUR SF6 PRICE BEING 2 TO 3 TIMES THAT OF OTHER EUROPEAN (SIEMENS, BROWN BOVERIE, ASEA) MANUFACTURERS, TO SAY NOTHING OF JAPANESE. I HAVE LITTLE DOUBT HOWEVER THAT THERE IS A DETERMINED EFFORT BEING MADE, PARTICULARLY BY BBC TO UNDERMINE THE UK'S METAL CLAD EHV SWITCHGEAR INDUSTRY AT THIS TIME.
2. BOTH GEC AND NEI ACCEPT THAT EVERYTHING POSSIBLE WAS DONE TO
HOLD THEM IN PACKAGE INDEED AT TIMES WE WERE PRESSING SO HARD
THAT WE ENDANGERED THE REST.
3. YOU SHOULD KNOW THAT ONE OF NEI PEOPLE MCNALLY (COMMERCIAL
DIRECTOR) MAY CAUSE TROUBLE AND ATTEMPT TO STIR UP N E UNIONS. IN MY VIEW THIS WOULD BE COMPLETELY COUNTER-PRODUCTIVE AS ANY PUBLICITY AT THIS TIME WILL ONLY HIGHLIGHT POSITION OF UK SWITCHGEAR. SUGGEST YOU HAVE QUIET WORD WITH MCDONALD OR BELL IF
HE IS BACK IN UK AND GET THE TROUBLESOME MCNALLY SAT ON. I HAVE TRIED TO PUT THIS ACROSS TO THE MAN BUT HE (ALONE) SEEMS NOT TO
UNDERSTAND.
4. I BELIEVE WE CAN GET REST OF PACKAGE ALTHOUGH WE HAVE DELICATE
QUESTION OF HOW WE HANDLE SUBSTATION WITH FOREIGN SWITCHGEAR TO
DEAL WITH. BUT IT IS WORTH HAVE AT POUNDS STERLING 80 MILLION.
5. TIME SCALE FOR ME LOOKS AWFUL. WILL TAKE AT LEAST ANOTHER WEEK HERE THEN LIPPIT INSISTS I CONTINUE WITH REST OF PLANNED VISIT.
HAPPY CHRISTMAS.
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